Slide 1: Smarter, Easier, Trusted Agreements Q1 FY25
Smarter, Easier, Trusted Agreements Q1 FY25
Slide 2: Safe Harbor
Safe Harbor This presentation contains “forward-looking” statements within the meaning of Section 27A of the Securities Act our ability to expand use cases within existing customers and vertical solutions; our ability to expand our of 1933, as amended, and Section 21E of the Securities Exchange Act
Slide 3: Non-GAAP financial measures and other key metrics
Non-GAAP financial measures and other key metrics To supplement our consolidated financial statements, which are prepared and presented in accordance with When evaluating the performance of our business and making operating plans, we do not consider these items GAAP, we use certain non-GAAP financial m
Slide 4: At a glance
At a glance Market leadership Large market opportunity2 Q1 FY253 performance $710M $710M $50B Total Revenue Billings World’s #1 e-Signature solution (28% Int’l) 5% Y/Y growth 7% Y/Y growth Customer base 1 TAM 1.56M 28% Operating Margin (Non-GAAP) $232M Free Cash Flow 33% FCF Margin Across all indust
Slide 5: Agreements power business
Agreements power business Sales HR Sales Contracts Offer Letters NDAs Background Checks SOWs Company Policies Service Procurement Field Service Vendor Contracts Change Orders Purchase Orders Work Agreements Termination Letters Marketing Legal Vendor Agreements Amendments Sponsor Agreements Affidavits
Slide 6: The Agreement Trap destroys value for your business
The Agreement Trap destroys value for your business Sales Sales velocity slows, deals slip, and revenue is lost Procurement Value erodes as terms, SLAs, and obligations remain buried in flat files 18% Companies spend an Legal extra 18% of their time on Teams struggle to keep pace and lurking risks go
Slide 7: Our Solution
Our Solution Unleashing the value of agreement data to power every company 7
Slide 8: Create Commit Manage
Create Commit Manage agreements in accessible, to agreements & agreements seamlessly in collaborative, & more relationships on a trusted ways that connect to automated ways platform your other systems 8
Slide 9: Docusign IAM Platform: Transform the way you agree
Docusign IAM Platform Transform the way you agree 9
Slide 10: Market leader with large untapped opportunity
Market leader with large untapped eSign Addons + CLM opportunity $25B $50B TAM¹ $25B Sign (1) Docusign estimate combining commissioned third-party research with internal customer count, pricing and spending data 10
Slide 11: Across all verticals
Across all verticals The world’s leading brands trust Docusign 11
Slide 12: Investing in international growth
Investing in international growth 17% Y/Y Int’l revenue growth Digital (Q1FY25)1 180+ Countries 28% of Total revenue Direct (Q1FY25)1 Focus 8 Market prioritization & investment Tier 1: Market leader Tier 2: Seed and grow Tier 3: Digital & emerging Primary market focus for Direct GTM investment High
Slide 13: Omni-channel experience throughout the customer journey
Omni-channel experience throughout the customer journey Extend Expand From eSignature to Direct Partner Agreement Process customer integrations From single Digital department customer to ELA From digital Signers to direct Across all GTM teams Paying web Accelerate value realization customer Drive RO
Slide 14: How customers buy from us
How customers buy from us Prepaid Model Multi-Factor Dollar Weighted Subscription Model Average Contract Length1 Volume Capacity Pre-Set # of Envelopes Seat Based Contract per user 62% ≤12 month duration 19 MONTHS 38% >12 month duration Add-on Functionality Multiple levels of add-on functionality (1
Slide 15: Docusign partner ecosystem
Docusign partner ecosystem Comprehensive network of cloud, service, and reseller partners ISVs (and 350+ more) Systems Integrators 500+ certified professionals across 10+ global & regional SIs Resellers 140+ resellers extend our reach, helping customers agree in 40+ countries 15
Slide 16: Financial Review
Financial Review ® docusign.
Slide 17: Total revenue growth
Total revenue growth Y/Y Growth 12% 11% 9% 8% 7% Revenue Contribution1 $712M $688M $700M $710M Direct v. Digital $661M 86% 14% Ent, Commercial Web & Mobile & SMB (Digital) (Direct) Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 (1) Fiscal quarter ended April 30, 2024. 17
Slide 18: Subscription revenue growth
Subscription revenue growth Y/Y 12% 11% 9% 8% 8% Revenue Contribution1 Growth Subscription v. $682M $696M $691M Pro Serve and Other $669M $639M 97% 3% Subscription Professional Services & Other Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 (1) Fiscal quarter ended April 30, 2024. 18
Slide 19: Billings growth
1 Billings Y/Y Growth 10% 10% 5% 13% 5% growth Rolling 4-Q Y/Y growth2 11% 12% 9% 9% 8% $833M $711M $710M $692M $675M Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 (1) Billings = total revenues plus the change in contract liabilities and refund liability less contract assets and unbilled accounts receivable in
Slide 20: Healthy operating efficiency
Healthy operating efficiency Non-GAAP gross margin1 Headcount2 SUBSCRIPTION GROSS MARGIN TOTAL GROSS MARGIN 86% 6,586 85% 85% 85% 84% 83% 83% 82% 82% 82% 6,441 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q1FY25 (1) Margins are as % of total revenue. Please see Appendi
Slide 21: Operating expenses as a % of revenue
Operating expenses as a % of revenue Non-GAAP S&M1 Non-GAAP R&D1 Non-GAAP G&A1 35% 35% 34% 34% 33% 12% 13% 12% 13% 12% 10% 10% 10% 10% 9% $238M $243M $230M $235M $231M $89M $96M $88M $87M $77M $68M $71M $70M $64M $62M Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY2
Slide 22: Operating leverage and cash flow
Operating leverage and cash flow Non-GAAP Operating Income1 Operating Cash Flow1 Free Cash Flow2 % of total revenue 27% 25% 27% 25% 28% 35% 31% 38% 38% 36% 32% 27% 34% 35% 33% $271M $264M $255M $249M $234M $240M $232M $202M $211M $215M $187M $184M $176M $178M $170M Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25
Slide 23: Q2 FY25 guidance
Q2 FY25 guidance Q2 FY251 Total revenue $725M - $729M Subscription revenue $705M - $709M Billings $715M - $725M Non-GAAP gross margin 80.5% - 81.5% Non-GAAP operating margin 27.0% - 28.0% Non-GAAP diluted weighted- 208M - 213M average shares outstanding 1 Revenue, billings, and share count in millio
Slide 24: FY25 guidance
FY25 guidance FY251 Total revenue $2,920M - $2,932M Subscription revenue $2,844M - $2,856M Billings $2,980M - $3,030M Non-GAAP gross margin 81.0% - 82.0% Non-GAAP operating margin 26.5% - 28.0% Non-GAAP diluted weighted- 208M - 213M average shares outstanding 1 Revenue, billings, and share count in
Slide 25: Appendix
Appendix 25
Slide 26: Financial & operational metrics
Financial & operational metrics Financial Metrics (in $ M) Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Revenue $661 $688 $700 $712 $710 % Y/Y Change 12% 11% 9% 8% 7% Subscription Revenue $639 $669 $682 $696 $691 % Y/Y Change 12% 11% 9% 8% 8% International Revenue $168 $180 $185 $196 $197 % Y/Y Change 17% 17%
Slide 27: GAAP to Non-GAAP gross profit reconciliation
Quarter Ended April 30, GAAP to Gross Profit (in $ thousands) GAAP gross profit 2024 560,194 2023 524,901 Non-GAAP Add: Stock-based compensation 18,883 18,087 Add: Amortization of acquisition-related intangibles 2,070 2,403 gross profit Add: Employer payroll tax on employee stock transactions 1,023 675
Slide 28: GAAP to Non-GAAP operating income and free cash flow reconciliation
Quarter Ended April 30, GAAP to Operating Income (Loss) (in $ thousands) GAAP income (loss) from operations 2024 22,628 2023 (4,651) Non-GAAP Add: Stock-based compensation Add: Amortization of acquisition-related intangibles 137,876 4,699 139,752 5,032 operating income Add: Employer payroll tax on e
Slide 29: GAAP to Non-GAAP operating expenses reconciliation
GAAP to Quarter Ended April 30, Sales & Marketing (in $ thousands) 2024 2023 GAAP sales and marketing 281,644 280,605 Non-GAAP Less: Stock-based compensation (46,271) (45,326) Less: Amortization of acquisition-related intangibles (2,629) (2,629) operating Less: Employer payroll tax on employee stock
Slide 30: Computation of billings
Computation of billings Quarter Ended April 30, Computation of Billings (in $ thousands) 2024 2023 Revenue 709,640 661,388 Add: Contract liabilities and refund liability, end of period 1,340,680 1,210,965 Less: Contract liabilities and refund liability, beginning of period (1,343,792) (1,191,269) Ad
Slide 31: docusign.
my docusign.